224.72(2m)(a)(a) Each mortgage banker or mortgage broker shall obtain and maintain a license for its principal office and a separate license for each branch office.
224.72(2m)(b)1.1. A principal office of a mortgage banker or mortgage broker shall be located in either this state or another state. Except as provided in
subd. 2., a principal office may not be located in a residence.
224.72(2m)(b)2.
2. A principal office of a mortgage banker or mortgage broker located in a residence on April 25, 2014, may continue to be located in that residence after this date but may not thereafter be relocated to any residence with a different address.
224.72(2m)(c)
(c) A branch office of a mortgage banker or mortgage broker shall be located in either this state or another state. A branch office may be located in a residence.
224.72(4)(a)(a) In addition to the requirements of
sub. (2), an applicant for a mortgage banker or mortgage broker license shall do all of the following:
224.72(4)(a)2.
2. File with the division a commercial surety bond which is in the amount of $300,000 for a mortgage banker or $120,000 for a mortgage broker, is issued by a surety company authorized to do business in this state, secures the applicant's faithful performance of all duties and obligations of a mortgage banker or mortgage broker, is payable to the division for the benefit of persons to whom the mortgage banker or mortgage broker provided services as a mortgage banker or mortgage broker, is issued on a form that is acceptable to the division and provides that the bond may not be terminated without at least 60 days' written notice to the division.
224.72(4)(a)4.
4. Submit evidence that establishes, to the division's satisfaction, a minimum net worth of $250,000 for a mortgage banker or $100,000 for a mortgage broker. Evidence of net worth shall include the submission of recent financial statements accompanied by a written statement by an independent certified public accountant attesting that he or she has reviewed the financial statements in accordance with generally accepted accounting principles.
224.72(5m)
(5m) Completion of licensing process. Except as provided in
sub. (7m), upon the filing of an application for a mortgage banker or mortgage broker license and the payment of the fee specified in rules promulgated under
sub. (8), the division shall make an investigation of the applicant including, if the applicant is a partnership, limited liability company, association, or corporation, the members or officers and directors, respectively, of the applicant. If the division finds that the character, general fitness, and financial responsibility of the applicant, including its members or officers and directors if the applicant is a partnership, limited liability company, association, or corporation, warrant the belief that the business will be operated in compliance with this subchapter, the division shall issue to the applicant a mortgage banker or mortgage broker license. A mortgage banker or mortgage broker license is not assignable or transferable.
224.72(7)(am)(am) A mortgage broker or mortgage banker may apply to renew a license issued under this section by timely submitting, on forms and in the manner prescribed by the division, a completed renewal application and all required renewal fees. The division may not renew a license issued under this section unless the division finds that the mortgage broker or mortgage banker continues to meet the minimum standards for license issuance under this section.
224.72(7)(bm)
(bm) The license of a mortgage broker or mortgage banker who fails to satisfy the minimum standards for license renewal shall expire. The division may, by rule, provide for the reinstatement of expired licenses consistent with the standards established by the nationwide mortgage licensing system and registry.
224.72(7m)
(7m) Denial of application for certain reasons. The division may not issue or renew a license under this section if any of the following applies:
224.72(7m)(a)
(a) The applicant for the issuance or renewal has failed to provide any information required under
sub. (2) (c) 1.
224.72(7m)(b)
(b) The department of revenue has certified under
s. 73.0301 that the applicant is liable for delinquent taxes. An applicant whose application for issuance or renewal of a license is denied under this paragraph for delinquent taxes is entitled to a notice under
s. 73.0301 (2) (b) 1. b. and hearing under
s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.
224.72(7m)(bm)
(bm) The department of workforce development has certified under
s. 108.227 that the applicant is liable for delinquent unemployment insurance contributions. An applicant whose application for issuance or renewal of a license is denied under this paragraph for delinquent unemployment insurance contributions is entitled to a notice under
s. 108.227 (2) (b) 1. b. and hearing under
s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section.
224.72(7m)(c)
(c) The applicant for the issuance or renewal is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857. An applicant whose license is not issued or renewed under this paragraph for delinquent payments is entitled to a notice and hearing under
s. 49.857 but is not entitled to any other notice or hearing under this section.
224.72(8)
(8) License period; fees. The division shall promulgate rules establishing the license period and the license fees for mortgage bankers and mortgage brokers.
224.72 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.72;
1989 a. 45;
1991 a. 39;
1993 a. 112;
1995 a. 27 ss.
6210,
6527m,
6528m,
6535m,
6591 to
6593; Stats. 1995 s. 224.72;
1995 a. 465;
1997 a. 27,
35,
145,
191,
237,
252;
1999 a. 9,
32;
2003 a. 260;
2007 a. 20;
2009 a. 2;
2013 a. 36;
2013 a. 360 ss.
11 to
15,
29 to
35.
224.72 Cross-reference
Cross-reference: See also chs.
DFI-Bkg 40 and
41, Wis. adm. code.
224.72 Annotation
Persons who received an ad in the mail or a post card offering services from a mortgage banker were not “provided services" and the surety had no liability to them. All Cities Privacy Class v. Hartford Fire Insurance Company,
2011 WI App 71,
333 Wis. 2d 483,
798 N.W.2d 909,
10-1738.
224.722
224.722
Registered entities. 224.722(1)
(1) A depository institution may apply for registered entity status with the division. The application shall be on forms and in the manner prescribed by the division and the applicant shall pay the same fee as that established by rule under
s. 224.72 (8) for mortgage bankers. The application shall be accompanied by a commercial surety bond in the amount of $300,000 that is issued by a surety company authorized to do business in this state and is written on a form that is acceptable to the division.
224.722(2)
(2) Upon the filing of an application for registered entity status and the payment of the required fee, the division shall make an investigation of the applicant. If the application is complete, and the division has no concerns regarding the applicant's character, general fitness, or financial responsibility, the division shall register the applicant as a registered entity.
224.722(3)
(3) Each registered entity shall register with the division each branch office where a mortgage loan originator sponsored by the registered entity engages in business as a mortgage loan originator. Applications for branch office registration shall be made on forms and in the manner prescribed by the division and shall be accompanied by the same fee as that established by rule for branch offices of mortgage bankers.
224.722(5)
(5) A depository institution's registered entity status, and the registration of all of its registered branch offices, expires on December 31 of each year.
224.722(6)
(6) A registered entity may apply to renew its registered entity status, and the registration of all of its registered branch offices, by timely submitting, on forms and in the manner prescribed by the division, a completed renewal application for the registered entity and for each branch office, along with the applicable fee under
sub. (1) or
(3). The division may not renew registered entity status under this section unless the division finds that the registered entity continues to meet the minimum standards for registration under this section.
224.722(7)
(7) If a registered entity fails to satisfy the minimum standards for renewal of its registration, its registration shall expire. If a registered entity fails to satisfy any requirement under
sub. (6) for renewing its registration of a branch office, the registration for that branch office shall expire.
224.722(8)
(8) A registered entity shall cooperate with, and provide access to records and documents required by, the division to carry out examinations in accordance with
s. 224.74 (2) of mortgage loan originators that are sponsored by the registered entity.
224.722 History
History: 2013 a. 360.
224.725
224.725
Licensing of mortgage loan originators. 224.725(1)(1)
License required. Except as provided in
sub. (1m), an individual may not regularly engage in the business of a mortgage loan originator with respect to a residential mortgage loan, or use the title “mortgage loan originator," advertise, or otherwise portray himself or herself as a mortgage loan originator in this state, unless the individual has been issued by the division, and thereafter maintains, a license under this section. Each licensed mortgage loan originator shall register with, and maintain a valid unique identifier issued by, the nationwide mortgage licensing system and registry.
224.725(1m)
(1m) License exemptions. The following individuals are not required to be licensed under this section:
224.725(1m)(b)
(b) An employee of a federal, state, or local government agency or housing finance agency who acts as a mortgage loan originator only pursuant to his or her official duties as an employee of the federal, state, or local government agency or housing finance agency.
224.725(1m)(c)
(c) An individual engaged solely as a loan processor or underwriter, unless the individual is an independent contractor or represents to the public, through advertising or another means of communication such as the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.
224.725(1m)(d)
(d) An individual who performs real estate brokerage activities only and is licensed under
s. 452.03, unless the individual is compensated by a lender, mortgage broker, or another mortgage loan originator or by any agent of a lender, mortgage broker, or another mortgage loan originator.
224.725(1m)(e)
(e) An individual solely involved in extensions of credit relating to time-share plans, as defined in
11 USC 101 (53D).
224.725(1m)(f)
(f) An employee of a bona fide nonprofit organization who acts as a mortgage loan originator only in connection with his or her work duties to the bona fide nonprofit organization and only with respect to residential mortgage loans with terms that are favorable to the borrower.
224.725(1m)(g)
(g) A licensed attorney who undertakes activities described in
s. 224.71 (6) if all of the following apply:
224.725(1m)(g)1.
1. These activities are considered by the Wisconsin Supreme Court to be part of the authorized practice of law within Wisconsin.
224.725(1m)(g)2.
2. These activities are carried out within an attorney-client relationship.
224.725(1m)(g)3.
3. The attorney carries out the activities in compliance with all applicable laws, rules, and ethics standards.
224.725(2)(a)(a) Applicants for a mortgage loan originator license shall apply to the division, on forms and in the manner prescribed by the division, and shall pay the fee specified in rules promulgated under
sub. (8). The division shall require mortgage loan originators to be licensed and registered through the nationwide mortgage licensing system and registry. Forms prescribed by the division under this paragraph may contain any content or requirement that the division, in its discretion, determines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this subchapter.
224.725(2)(b)1.1. Except as provided in
subd. 2., an application shall include the individual's social security number. The division may not disclose the individual's social security number to any person except as follows:
224.725(2)(b)1.a.
a. The division may disclose the social security number to the department of revenue for the sole purpose of requesting certifications under
s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under
s. 108.227.
224.725(2)(b)1.b.
b. The division may disclose the social security number to the department of children and families in accordance with a memorandum of understanding under
s. 49.857.
224.725(2)(b)2.
2. If an individual does not have a social security number, the individual, as a condition of applying for, or applying to renew, a license under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the individual does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this subdivision is invalid.
224.725(2)(c)
(c) Any applicant for a license under this section shall furnish to the nationwide mortgage licensing system and registry information concerning the applicant's identity, including all of the following:
224.725(2)(c)1.
1. Fingerprints for submission to the federal bureau of investigation and to any governmental agency or entity authorized to receive this information, for purposes of a state, national, and international criminal history background check.
224.725(2)(c)2.
2. Personal history and experience in a form prescribed by the nationwide mortgage licensing system and registry, including the submission of authorization for the nationwide mortgage licensing system and registry and the division to obtain all of the following:
224.725(2)(c)2.b.
b. Any information related to any administrative, civil, or criminal findings by any governmental jurisdiction.
224.725(3)
(3) Issuance of license. Except as provided in
sub. (6), upon the filing of an application for a mortgage loan originator license and the payment of the fee specified in rules promulgated under
sub. (8), the division may issue to the applicant a mortgage loan originator license if the division finds that all of the following apply:
224.725(3)(a)
(a) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, unless the revocation was subsequently and formally vacated.
224.725(3)(b)
(b) The applicant has not been convicted of, or pled guilty or no contest to, a felony in a domestic, foreign, or military court during the 7-year period preceding the date of the application or, for a felony involving an act of fraud, dishonesty, breach of trust, or money laundering, at any time preceding the date of the application. With respect to any conviction for which the applicant has received a pardon or expungement of the conviction, the pardoned or expunged conviction shall not result in an automatic denial or revocation of a mortgage loan originator license. The division may consider the underlying crime, facts, or circumstances of a pardoned or expunged felony conviction when determining the eligibility of an applicant for licensure under this paragraph and
par. (c).
224.725(3)(c)
(c) The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this subchapter. For purposes of this paragraph, an individual has shown that he or she is not financially responsible if he or she has shown a disregard in the management of his or her own financial condition. In making a finding related to an applicant's financial responsibility for purposes of this paragraph, the division may consider whether the applicant has current outstanding judgments other than those resulting from medical expenses, has current outstanding tax liens or other government liens and filings, or has, within the past 3 years, any pattern of seriously delinquent accounts.
224.725(3)(f)
(f) The applicant has met the surety bond requirement under
sub. (4).
224.725(4)(a)(a) Each mortgage loan originator shall be covered by a surety bond in accordance with this subsection. A surety bond of a mortgage banker, mortgage broker, or registered entity meeting the requirements of
par. (b) and
s. 224.72 (4) (a) 2. or
224.722 (1) may satisfy the requirement under this paragraph for a mortgage loan originator who is sponsored by the mortgage banker, mortgage broker, or registered entity.
224.725(4)(b)
(b) The penal sum of the surety bond shall provide coverage for each mortgage loan originator in an amount that reflects the dollar amount of residential mortgage loans originated by the mortgage loan originator, as determined by the division.
224.725(4)(c)
(c) The surety bond shall be in a form prescribed, and satisfy all requirements established, by rule of the division.
224.725(4)(d)
(d) When an action is commenced on a mortgage loan originator's surety bond, the division may require the filing of a new surety bond. If an action results in recovery on a mortgage loan originator's surety bond, the mortgage loan originator shall immediately file a new surety bond.
224.725(5)(a)(a) A mortgage loan originator may apply to renew a license issued under this section by timely submitting, on forms and in the manner prescribed by the division, a completed renewal application and all required renewal fees. The division may not renew a license issued under this section unless the division finds that all of the following apply:
224.725(5)(a)1.
1. The mortgage loan originator continues to meet the minimum standards for license issuance under
sub. (3).
224.725(5)(b)
(b) The license of a mortgage loan originator who fails to satisfy the minimum standards for license renewal shall expire. The division may, by rule, provide for the reinstatement of expired licenses consistent with the standards established by the nationwide mortgage licensing system and registry.
224.725(6)
(6) Denial of application for certain reasons. The division may not issue or renew a license under this section if any of the following applies:
224.725(6)(a)
(a) The applicant for the issuance or renewal has failed to provide the information required under
sub. (2) (b).
224.725(6)(b)
(b) The department of revenue has certified under
s. 73.0301 that the applicant is liable for delinquent taxes. An applicant whose application for issuance or renewal of a license is denied under this paragraph for delinquent taxes is entitled to a notice under
s. 73.0301 (2) (b) 1. b. and hearing under
s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.
224.725(6)(bm)
(bm) The department of workforce development has certified under
s. 108.227 that the applicant is liable for delinquent unemployment insurance contributions. An applicant whose application for issuance or renewal of a license is denied under this paragraph for delinquent unemployment insurance contributions is entitled to a notice under
s. 108.227 (2) (b) 1. b. and hearing under
s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section.
224.725(6)(c)
(c) The applicant for the issuance or renewal has failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857. An applicant whose license is not issued or renewed under this paragraph for delinquent payments is entitled to a notice and hearing under
s. 49.857 but is not entitled to any other notice or hearing under this section.
224.725(8)
(8) License period; fees. The division shall promulgate rules establishing the license period and the license fees for mortgage loan originators. The fees shall be no less than $250 annually. The rules may not require a license fee for an individual who is eligible for the veterans fee waiver program under
s. 45.44.
224.725 Cross-reference
Cross-reference: See also chs.
DFI-Bkg 40 and
41, Wis. adm. code.
224.728
224.728
Nationwide mortgage licensing system and registry and cooperative arrangements. 224.728(1)(a)(a) The division shall participate in the nationwide mortgage licensing system and registry. The division may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to licensees under this subchapter. With respect to any form, fee, or other information related to the initial issuance or renewal of a mortgage loan originator license under this subchapter, the division may require that any applicant submit such form, fee, or other information directly to the nationwide mortgage licensing system and registry and may authorize the nationwide mortgage licensing system and registry to perform any function under this subchapter related to the licensing of mortgage loan originators in this state.
224.728(1)(b)
(b) The division may provide to the nationwide mortgage licensing system and registry any information relating to an applicant for initial issuance or renewal of a mortgage loan originator license that the division and the nationwide mortgage licensing system and registry determine to be relevant to the application or to any mortgage loan originator responsibility administered or conducted through the nationwide mortgage licensing system and registry.
224.728(1)(c)
(c) The division may rely on the nationwide mortgage licensing system and registry to establish any dates relating to application or reporting deadlines for mortgage loan originators, to establish requirements for amending or surrendering mortgage loan originator licenses, or to establish any other requirements applicable to mortgage loan originators licensed under this subchapter to the extent the requirements are a condition of the state's participation in the nationwide mortgage licensing system and registry.
224.728(2)
(2) Channeling information. To reduce the points of contact that the division may have to maintain, and to facilitate compliance with the requirements under
s. 224.725 (2) (c), the division may use the nationwide mortgage licensing system and registry as a channeling agent for requesting and distributing information to and from any source so directed by the division, including the federal bureau of investigation, any state or federal department of justice, or any other governmental agency.
224.728(3)
(3) Challenge process. The division shall establish a process whereby mortgage loan originators may challenge information maintained by the nationwide mortgage licensing system and registry on behalf of the division.
